NETWORK Rail's boss is to take over the controversial £50billion High Speed 2 rail line on an annual salary of nearly £600,000, ministers revealed yesterday.

Sir David Higgins will be paid £600k a year for his work at Network Rail

But critics said Sir David Higgins, 58, is set to be paid a fortune to run the Government's taxpayer-funded "white elephant".

Sir David, who oversaw the construction of London's Olympic Park, is stepping down as Network Rail chief executive in January.

The Aussie will then join HS2 as chairman for one day a week on £950 a day before joining full time for six months in March on an annual salary of £591,000 - his current NR salary.

Next autumn he will move to a three day week for £240,000 a year - or £1,500 a day.

But yesterday the Stop HS2 campaign slammed his huge pay deal.

With people of such a high calibre you need to pay the going market rate

A Department for Transport spokesman

It said that as NR chief Sir David has seen post-tax profits drop from £761million to £699million while its taxpayer guaranteed debt rose from £27.2billion to £30.3billion.

Meanwhile NR is facing record fines of up to £75million from the rail Regulator for failing to meet punctuality targets.

Stop HS2 campaign manager Joe Rukin said: “While David Higgins has been at Network Rail, their profits have dropped and their debts have increase to even more unpayable levels, so he will fit in perfectly at HS2 Ltd.

"This is exactly the sort of ‘expertise’ we have come to expect on this project.

"Meanwhile taxpayers will foot the bill for his new role at HS2."

The Taxpayers' Alliance - which yesterday published a report warning that dozens of towns and cities would get a worse service from HS2 - described Sir David's pay as "shocking".

"The case for HS2 has fallen apart so the scale of this massive pay award is particularly shocking. It's time for the Government to scrap this white elephant and cut taxes for hard-working families instead."

Claiming that the case for HS2 is "continuing to unravel", the TPA report said extra capacity on the rail network could be provided more cheaply and quickly by other schemes.

HS2 will link London to Birmingham by 2026 and Leeds and Manchester by 2033.

In recent weeks its projected cost, including a £14.4billion contingency fund, has soared to £42.6 billion plus the £7.5billion cost of the trains.

Earlier this month the Public Accounts Committee branded the scheme "unrealistic" and warned that costs are beginning to "spiral".

This week Shadow Chancellor Ed Balls shattered cross-party support for the project by warning he would not "write a blank cheque" for the scheme.

But yesterday chief secretary to the Treasury Danny Alexander declared that HS2 and other transport projects are "absolutely essential to the long-term future of our economy".

In a dig at politicians who appear to be going lukewarm on the scheme, he added: "It would be absolute folly to neglect these long-term benefits for short-term political reasons."

A Department for Transport spokesman defended Sir David's salary at HS2, saying that as chief executive of the UK's Olympic Delivery Authority he had overseen the construction of the Olympic Park on time and on budget.

He said: "With people of such a high calibre you need to pay the going market rate."

Transport Secretary Patrick McLoughlin said: "His experience at both Network Rail and as Chief Executive of the Olympic Delivery Authority - where he oversaw construction of the magnificent Olympic Park, a legacy which will be enjoyed by generations - will be essential to ensure we deliver HS2 on time and on budget.”

Sir David will replace veteran engineer, Doug Oakervee, 72, who said: “I believe HS2 is vital to the growth of the UK economy and will deliver the capacity our rail network sorely needs. Sir David is the right man to continue the delivery of this project."